Wait and watch for Maruti: Manish Sonthalia, Motilal Oswal Asset Management

Manish Sonthalia, Vice-President and Fund Manager, Motilal Oswal Asset Management, in a chat with ET Now, gives his stock call


What is your call on Maruti?

There were some reports today in the newspaper saying that Maruti is looking at hedging for vendors. If that is done then it takes away lot of pain on the 30% imports which the company is doing. The problem of the company had been that Yen has been appreciating and 30% is imported and it is all Yen denominated and plus if there is some resolution on the royalty which is again Yen denominated and it is the bottom line and the minority shareholders you could be looking in at expansion in margins but between the two Tata Motors looks like a more compulsive bet at this point in time.